Paccar Inc. posted first-quarter income well above a year ago even with a $446 million after-tax charge to settle civil suits from a 7-year-old price fixing case in Europe.
The Bellevue, Washington-based truck manufacturer reported net income of $733.9 million, or $1.40 per diluted share, compared with $600.5 million, or $1.15, in the January-March period of 2022. Before the charge, Paccar earned $1.18 billion, or $2.25. That beat estimates of analysts surveyed by investor site Seeking Alpha by 42 cents.
Paccar is the second of four major truck makers to report strong financial results for the quarter as other industries, particularly technology, experiences a pullback. Sweden’s Volvo Group reported surprisingly strong revenue and income last week. Germany’s Daimler Truck and Traton Group will report later.
“Paccar’s results reflect ongoing strong demand for premium quality DAF, Peterbilt and Kenworth trucks, aftermarket parts and financial services worldwide,” Paccar CEO Preston Feight said in a news release.
Paccar posts record quarterly revenue
The company posted record quarterly revenues of $8.47 billion, up 30.9% from the $6.47 billion reported a year ago. That was $660 million higher than analyst estimates.
“Paccar’s long-term investments in new truck models, advanced manufacturing and a dynamic aftermarket parts business are contributing to higher operating margins,” Feight said.
Those investments include next-generation battery electric and hydrogen powertrains, development of an autonomous vehicle platform with Aurora Innovation and enhanced connectivity through an undisclosed strategic investment in Platform Science.
Capital investment in the quarter totaled $132.9 million and research and development expense was $97.2 million.
Paccar’s parts business continued to shine with record revenue of $1.62 billion and pretax income of $438.6 million, 29% higher than the $340.2 million earned in the first quarter of 2022.
The company ended the quarter with operating cash of $684.6 million and manufacturing cash and marketable securities of $5.92 billion.
This is a developing story.
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